Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (December 2002)
12 slides from Wartsila Oyj Abp's investor day presentation, Dec 3, 2002
Slide 1: The first global supplier of decentralised bio power plants
The first global supplier of decentralised bio power plants Pekka Ahlqvist, Group Vice President, Power Plants Capital Markets Day, Oberwinterthur, Switzerland 3 December 2002
Slide 2: Wärtsilä BioPower Business
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Slide 3: Bio energy
Bio energy CO2 CO2 n Renewable i.e CO2 neutral n CO2 reduction the main political driving force Photosynthesis Combustion Decomposing Bio Fuels n Wood and forest bio mass C n Energy crops and short rotation forestry n Agricultural residues n Municipal and industrial wastes n Peat 02SER084 3
Slide 4: Market opportunities
Market opportunities n Huge market potential for bio power plants. Annual bio mass growth equals to 15 times the total use of petroleum products n Bio power plants can become the second global renewable energy business - after wind power n EU White Paper: targets by year 2010 - Bio energy: 45 Mtoe t
Slide 5: Wärtsilä BioPower
Wärtsilä BioPower n Positive bio energy growth prospects n Bio energy is a good fit with Wärtsilä n Strong synergies without overlaps ½ From Sermet acquisition we got ½ Bio fuel combustion know-how ½ Patented, modern BioGrate product range ½ From Wärtsilä we already had ½ Global sales and service ne
Slide 6: Wärtsilä BioPower today
Wärtsilä BioPower today n Turnover 25 MEUR 2002 n Total deliveries 142 MWth 2002 n Employees ~ 100 persons n More than 1,100 boiler plants delivered to Northern Europe and Russia 26 % n Complete range of small boiler and power plants Russia Finland 34 % n Bio boiler plants from 3 to 17 MWth Sweden n
Slide 7: Goals
Goals ½ A major cost reduction of 1…5 MWe bio power plants by 2004 ½ Net sales 150 MEUR by 2005 02SER084 7
Slide 8: Challenges
Challenges Pcs. 140 n Wide range of available fuels 120 100 Amount of available fuel sources n Varying physical and combustion characteristics 80 60 versus size n Most sources are small and scattered 40 n Tailored small plants are too expensive 20 0 Fuel source size Electricity Production Costs EUR/
Slide 9: Main strategy
Main strategy n Starting in Nordic countries, home market, favourable market conditions n Initial focus on subsidised target markets and customers n EU in general leads the renewables-introduction n Prioritize market selection n Through standardisation and volume increase costs and delivery times ca
Slide 10: Strategy in a nutshell
Strategy in a nutshell Core: n Decentralisation Fuel n Repetition and volume Moisture Product Portfolio n Customization per application Wet Present New Growth areas: BioGrate Product n Power plants (CHP) New Product 2 n Power range Dry 1 n New markets n New fuels 0 1 5 10 20 50 MWth 02SER084 10
Slide 11: BioPower vision
BioPower vision n The future markets will be ”where the sun shines and it rains all the time” i.e. in the tropical countries - in areas where Wärtsilä is strong. n Wärtsilä plans to become the first global supplier of decentralised bio power plants 02SER084 11
Slide 12: Product portfolio today
Product portfolio today n Bio (heat) boiler plants: ½ Outputs 3 MW, 5 MW, 8 MW, 10 MW, 12 MW ja 17 MW ½ District heat / hot water ½ Process steam (10/16 Bar) n Bio power plants: ½ Outputs 2 MW ja 5 MW ½ Pure electricity (condense) ½ Electricity + hot water ½ Electricity + steam n 3 fuel groups based